Bitcoin’s Realized Profits Reach 14-Month High – Why You Should Watch Out

• Bitcoin’s [BTC] realized profit has climbed to a 14-month high.
• An unabated increase in trader’s profits may lead to a price correction.
• A look at the ratio of BTC’s on-chain transaction volume in profit to loss spike showed that BTC profit-taking transactions have been happening twice as fast as loss-taking transactions for several weeks.

Bitcoin’s Realized Profits Reach 14 Month High

Bitcoin’s [BTC] price recently broke the psychological $30,000 mark and its realized profits have hit a 14 month high according to data from Santiment. This increase in average trader returns could lead to a price correction if the trend continues.

Average Trader Returns

The last few weeks have seen an increase in Bitcoin accumulation which has resulted in higher average trader returns since May 2022. If this trend of increasing profits continues, it could result in an event of price reversal. The MVRV ratio (Z Score) is currently positive at 0.776 which suggests that the leading coin is overvalued due to speculative buying and investor exuberance among other factors driving the price higher in the short term. In such scenarios, a price correction or period of consolidation usually follows.

Profit Taking Transactions

The ratio of BTC on-chain transaction volume between profit taking and loss taking also reveals that profit taking occurrences are happening twice as fast as losing ones for several weeks now. This means that if this pace of profit taking continues, we may see a price cool off soon enough. On the chart, BTCs prices are resting close to its upper Bollinger Bands indicator limit which could be an indication of potential pullback soon too.

Why Skyrocketing Profits Impact You

If Bitcoin’s realized profits keep escalating it could lead to a market downturn which will be felt by all investors and traders alike regardless of their positions on individual coins or tokens . It should be noted that even though there might be some corrections here and there due to these trends, they should not detract from overall growth and potential long term gains for those who continue to hold their crypto assets for extended periods of time .


As Bitcoin’s realized profits continue rising, so does the risk of prices dropping due to corrections or consolidations – something all traders should take into consideration when making investment decisions . Although there might be some short term losses, investing with long term goals in mind can still bring about good returns despite any market volatility .